The Russian government will spend 620 billion rubles ($18.2 billion) on the development of the newly annexed republic of Crimea and the federal city of Sevastopol through 2020, Regional Development Minister Igor Slyunyayev said.
The price tag includes the construction of a bridge over Kerch Strait to connect Crimea and mainland Russia, Slyunyayev said, RIA Novosti reported Monday.
The cost of the 4.5-kilometer bridge to the peninsula, which has no connection to Russia by land, was earlier estimated by the government at up to $3 billion, but now sits at $4.3 billion.
Earlier media reports cited Crimean Prime Minister Sergei Aksyonov as saying that Moscow was considering earmarking as much as 825 billion rubles ($24.2 billion) for Crimea.
Crimea, an autonomous republic within Ukraine, was annexed by Russia in March despite protests from Kiev and Western governments.
The peninsula's budget deficit was estimated by Russian Finance Minister Anton Siluanov in March at $1.5 billion.
But Kremlin aide Andrei Belousov said earlier that the deficit can be eliminated by 2016 or 2017.
The deficit was due to Kiev's decision to force most major Crimean taxpayers to pay their taxes in Ukraine's capital, Belousov said.
However, regional development analysts have pointed out that the peninsula has other economic problems as well.
Crimea, isolated from the mainland after the annexation, will have to spend more on water and energy, and faces a slump in the tourist industry, which is heavily reliant on Ukrainian tourists, analysts said.
Read more:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
